Cloud kitchen has become a formidable option for anyone who wants to enter the food business at a low investment. There are lots of advantages offered by the cloud kitchen over the restaurant. To know more about the comparison read “Comparison between cloud kitchen and restaurant“. For opening any cloud kitchen the first thing is to sort out the licences and regulation required for operating a cloud kitchen.
There are few mandatory licences which must be ready with us before we start our day to operations. It’s always good to obey the safety and government norms before getting into authority troubles.
- FSSAI: Food Safety and Standards Authority of India. This is a mandatory license for any food-related business in India and must be acquired in the name of the company and any one of the directors. The duration of the license can vary between 1 year to 5 years and must be renewed before expiration. It’s always good to mention FSSAI number on the packaging and invoice to create a trust within our customers about our offerings.
- GST: This is mandatory for any business in India and it’s also good to have one to file all the company related taxes. GST needs to be filed on a monthly basis, quarterly basis, and yearly basis. GST also helps is procurement from registered vendors as it offsets the tax amount if both the parties are having GST number. We must apply for a GST number immediately after getting a bank account.
- Trade License: Every business needs to have a trade license and the same goes with cloud kitchen as well. This can be procured from the local municipality office by furnishing all the required documents. We may need to give some extra money apart from the fee to get the work done. This is a one time work and its kind of mandatory to operate the business legally.
- Fire and Safety License: Now this is not exactly mandatory to start with but its kind of good to have to save yourself from future troubles. This is part of regulation and the establishment deals with fire and human safety are mandatory at every workplace.
- Salary Accounts, PF, etc: Again this is the last thing which most of the cloud kitchen owners do as blue collar workers are not very serious about paying taxes and having PF account. If you are into serious business and have a long term goal, its good to set up the process from day 1. This eventually benefits your team in the long run and creates trust and cordial relationship between everyone.
If we follow the above details, we are good to start with our cloud kitchen business. Before going to start all the regulation and license process, we might need to know a few factors before starting a cloud kitchen. These factors can give us insights into the requirements to actually run the business. You can read more about it here.
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